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Japan Bought The Most Foreign Stocks Since Records Began Last Week
The Ministry of Finance just reported that Japan bought JPY 657 billion (over $5.6 billion) of foreign stocks last week. That is the biggest weekly purchase of foreign equities since records began in 2001. The huge size of the purchases- more than double the average size of recent weekly purchases - appears to have been 'spent' on European stocks (and perhaps some Chinese). It is unclear whether this is direct buying by the banks as a proxy for The BoJ's quid pro quo or merely front-running this week's exuberance from Draghi by Mrs.Watanabe now that her Swissy trade exploded...
Sure - makes perfect sense... buy the most foreign stocks ever ever...
and it appears to have been dumped into European equities...
Charts: Bloomberg
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They really should've started keeping track sooner.
Yes, the misplaced modified really stands out! LOL
Smart, now move those companies to Japan.
as much as i respect the japanese (leaving aside the aply named fukushima, of course), when they start buying any security in mass, you know the jig is up
They're just doing their buddies a fav. How does the old saying go? "You suck my cheesy dick I toss your dirty asshole salad."
they just wanted to get in on the HFT central bank front running profits. "if they can do it, why can't we?"
Actually it's funny...we keep track of the most useless little detail, there's statistics about every little needle'n'pin produced and bought - but we don't know what a CB buys for billions and billions! We have no idea who really owns what!
Get ready, were getting closer folks.
They have to convert Yen denom assets into assets throwing off cash flow in hard currency.
Could also have been money flowing into the newly opened Shanghai Composite.
If I were Japanese I'd be buying phys like a bandit.
+1
They seriously have NOTHING left to lose.
Everyone in fiat currency has everything to lose. Which is everyone everywhere, that's the point. The US Dollar is the King of Fiat, and will be the last to go down right before the reset or WWIII.
Someone else trying to have "anything but Dollars"
Exactly, spend your currency now, Americans, before dollars become useless.
I hope all the "anything but dollars" people get screwed by saving in their local currency. Seems like they're missing the point of holding fiat currency.
Currency? Whats currency?
Gold and your girlfriends ass.
race to the buttom
kowalli - not sure what you mean? race to the bottom of what?
the 1% are racing at something like $250 billion dollars globally printed per month to the top.
it's all about wealth transfer. they don't care about jobs, or economies, whether jobs are in tokyo or ohio or london.
this is simply about the central bankers printing money - and then pumping it into each others ... err markets. if you let me pump yours, i'll let you pump mine.
devaulation of hard assets while at the same time inflation of life necessities and deflation of paychecks, means the average person has to sell anything valuable they have, to 1% who have paper stock gains, while the corporations that the 1% own, and employ the people who still have a job, can then pay people even less in real wages and at the same time rape the people of any savings they have.
they transfer that work and taxes and profit made by less than 1%, to the 'entitled' and on 'welfare' (sorry if that word hurts the politically correct crowd') - think obama - and buy their votes with it.
i am very familiar with this tactic in united states, canada and europe, not sure exactly how it work in the rest of the world, because i'm not sure they are all working the 'immigrant' solution to both increase population, increase wage competition, and increase purchasing competition to big ticket such as homes and cars.
it's brilliant, it's working and it isn't going to stop anytime soon. you think the HUGE number of people in canada, us, europe on welfare are going to bite that hand? they are almost the majority now.
Good luck with that.
Sounds like they have more confidence in the Euro than they do in the Dollar.
Do we have any idea what the Japanese own in US stocks? It would be interesting to see the breakdon of US stocks vs. European.......
If CBs are actually buying publicly traded equities, I think they should be required to disclose:
1. what they own,
2. whether they've made the legally required filings under the Williams Act,
3. what process they use to decide how to vote their shares in matters of corporate governance,
4. how they've actually voted their shares historically,
5. what they do with the dividends received, and
6. what taxes they've paid in the local jurisdiction on dividend income and capital gains, if any.
Just imagine a foreign goverenment owning a nearly controlling interest in 2 or 3 of the DJIA 30 stocks. Remember, it only takes a relatively small % ownership to control a widely-held publicly-traded company.
There are soooo many problems with CBs buying and/or owning publicly traded equities that I really just don't want to believe that they do it despite evidence to the contrary. At least if a CB wants to unwind bond positions they can hold them to maturity and let them roll off the b/s as they mature. Not so with equities.
So what should they buy instead? Lollipops?
Tanto knives for seppuku.
What Problem ?
SUCKERS of ALL STRIPES are Welcome in Markets, be they Central Banks or otherwise........
Did the Central Bank of Israel stop APPL from falling from $ 700 to under $ 400. ?
Did the US Central Bank stop APPL from falling from $ 200. to $ 79. in the 2008 period ?
They didn't because "They" can't.........
Parenthetically, that it why to anyone Paying Attention, the SNB move is no surprise......
MANIPULATION is NOT an Illusion...but CONTROL is......
EVERY INSTRUMENT reaches a POINT where, Relative to that Period of TIME, it cannot go any HIGHER, and FALLS.......
"HIGHER" to the Skilled PARTICIPANT only increases OPPORTUNITY........
"WHY" an INSTRUMENT goes HIGHER is thus IRRELEVANT........
Why is this a surprise? They have already completely cornered the entirety of Japanese bond issuance, they have to buy something else. Buy gold? We all know what CBs think of that idea.. cue Draghi's smug answer to the same - "hehe, no, we won't be doing that."
Let me get this straight. The week prior to a huge ECB decision the BOJ uses recently printed funny money to buy $5Billion in a failing European equity market, followed by a nicely timed $600B ECB QE "leak", a day before Mr. "What Ever it Takes" gives his big speech and we're suposed to think this is ok? I guess this is why CNBC asks the dude from Pawn Stars for investment advice? Stop the Planet.. I want off.
That 'bout sums it up.
They overbought some folks
They only started keeping records last week?
Does anyone find it amazing that the best place these gigantic nations can find to park their money is ... overpriced equities?
That is the sheer brilliance of the Japanese plan. They are printing Yen to buy foreign equities. They are trading yen created out of thin air for real assets. If they do it enough, the Yen will not be worth anything once people are onto them. Kamikaze currency.
If we could get away with that bullshit, we would too.
Isn't that precisely what QE is?
Yeah, and if you are the "Leader" in money printing your currency gets stronger than those that won't or those that hesitate to play along. Printed money equals stimulus... Growing the economy on money that grows on a printing press. Step right up, you can't win if you don't play.
It sure is, but this one ups everyone else. Past QEs monetized the governments own debt and some domestic mortgages which was ridiculous enough. This one is even more in your face by buying up foreign assets.
Hey, here's some paper with pictures of Hirohito we printed up and wrote $9,000,000,000,000,000,000 yen on. Can we have Nestle in exchange?
what the US / EU can do though is after the Japanese has bought all their equities/. bonds (from US/EU holders) the Fed just raises rates crashs the markets and the Japanese investors take a bath... and then US buys back in... ie they need someone to cash out on looks like its the Japanese pension funds in act of desperation by the Govt..
Random thoughts on BOJ buying foreign equities...
1. BOJ is basically a counterfeiter. It's one thing for the BOJ to spend counterfeits in their own legal jurisdiction with full public disclosure; but, this is effectively as much a sort of international criminal activity as would be trying to pass off fake bearer bonds or phony bills of credit.
2. The FED -and by extension the US Government, are abetting a theft by conversion.
The fact that the US allows the BOJ to buy US equities ( and conceivably via REITs, US real estate ) shows that the global trade system is being utilized to seize ownership and/or control of real rent-producing property.
Converting counterfeit monies into real equity stakes and real estate is a theft by conversion. It is a crime to pass counterfeits. These purchases are fraudulent.
3. This activity may well be a violation of RICO statues.
The BOJ is an organization involved in purchasing real property with counterfeited funds. This is a form of organized crime as surely as it would be if common Criminals printed up fake $100 bills in their basement and then went about buying industrial equipment, cars or trailers with the intent to rent or re-sell to realize a profit on the fraudulently obtained property.
seems to have taken a while to figure out all financiers were int'l criminals, i guess the existence of orgs like the Yakuza didn't give it away... otherwise pretty spot on.
the FED did the same and the ECB is about to do it today... it will keep going until the Govt in all these countries change and go back to non QE funds the problem that maybe long way off..
All the chips are being shoved out into the middle of the table. One final round of cards thrown out. It's all on the line...... savings, cars, house, wife, kids. Each player sweating it out as the hands are laid down.
It's too bad they'll ALL be losers because the banker just snuck out with the kiddy.
When this thing blows, we all lose. Total destruction of millions of lives and countries.
It WILL happen. What we need to concerned about is what things are going to be like "on the other side."
From what I see...... it doesn't look good.
your qe and my qe setting markets on fire...
chucking my money your way
my black boy said to your black boy, gonna push your market higher
talking about ay na..ay na
https://www.youtube.com/watch?v=B1voj6H8CHY
:)
I dont get it, why would the Japs bother with euro junk when they can get safer S&P stocks?
Did anyone say that the BOJ is/was NOT buying US Equities?
I believe that the BOJ is buying US equities.
-The chart offered clearly has a US indices component, and it is only a chart of one week.
-Also: would you buy the index that is cheaper or more expensive vis-a-vis the current FX cross, is priced in your highest or lowest foreign reserve balance, etc...
'Wealth effect' is 'wealth effect' no matter who is propping/buying US equities/futures.
BOJ printing and propping/buying US equities/futures would not look any different from FED buying US equities.
The specific timing of liquidity injections -buying & indices ramping- might be a little different depending on who is gunning the orders, that's all...
it supports my theory from a few weeks back that, since US retail investors don't have the free cash to be bagholders during this cycle, foreign equity holders will be left holding the bag.
we've always got to find a bigger fool, and when all the domestics have been bled dry, we've got to go searching for them abroad.
easy peasy.